Reinsurance linked investment

Hurricane Milton has had a less severe impact on catastrophe bonds than had been feared as the storm approached Florida last week, but this could still be sufficient to drive risk premiums higher according to specialist investment manager Plenum Investments.

Here are the ten most popular news articles, week ending October 13th 2024, covering catastrophe bonds, ILS, reinsurance capital and related risk transfer topics. To ensure you never miss a thing subscribe to the weekly Artemis email newsletter updates or get our email alerts for every article we publish.

Responding to the potential impact of losses from hurricane Milton, the catastrophe bond market has fallen by just 1.34% at the end of week pricing of the index calculated by Swiss Re Capital Markets, while the US wind specific version of the cat bond index fell by only 3.64%.

Analysis undertaken by specialist investment manager Twelve Capital suggests an insurance industry loss in the range of $20 billion to $50 billion from hurricane Milton, with a 0% to 4% principal loss possible for the catastrophe bond market.

The catastrophe bond market is expected to fall in the wake of hurricane Milton. But, as with other historical events, at least some of that drawdown is likely to be recovered and after the storm cat bond market yields are likely to rise, according to Jeffrey Davis, Partner & Portfolio Manager, Investments at Elementum Advisors, […]

Hurricane Milton is initially estimated to result in insurance and reinsurance industry losses below $50 billion, according to Euler ILS Partners, at which level the notional impact to insurance-linked securities (ILS) portfolios is not expected to be substantial.

Yesterday, all of the 1940’s Act registered US mutual investment funds that allocate to catastrophe bonds and other insurance-linked securities (ILS) increased their net asset values (NAV), in some cases recovering a meaningful percentage of the declines recorded due to hurricane Milton.

Differing from the views of some other equity analysts, the Jefferies team believe that hurricane Milton would need to result in an insurance industry loss of above $50 billion for it to cause any hardening of property reinsurance at the January renewals.

While industry losses from hurricane Milton may not be as high as had initially been feared, the storm’s impacts in Florida are still expected to be a loss in the tens of billions of dollars, and alongside loss experience in the sector to-date this can still drive property catastrophe reinsurance rates higher at the January […]

Speaking at ILS Bermuda’s Convergence 2024 event this week, David King, Founder and Senior Managing Director of Culpeper Capital Partners, stated that insurance-linked-securities (ILS) has been a major change that has helped drive a deconstruction of the traditional insurance and reinsurance balance-sheet.